EU Pig Sector losing ground on world market

The European pig producing and processing industry
will have to concede some of its share of the world market, according to the
Danish Meat Association (DMA).

In an article published today in the Agrarisch Dagblad, Knud Buhl, Trade
Director of the DMA, was quoted as stating recently at the yearly congress of
the livestock and meat producers cooperatives of the Deutsche Raiffeisenverband
that the world market will grow significantly, but that the Europeans will
hardly profit from this growth.

TariffsThe EU tariff barriers will have to be reduced in
any case in the near future in order to make investments in the meat sector more
attractive for other countries, but this will inevitably bring more competition
into the market.

Genetically modified feedExpansion in pig producing will
continue as part of the Dane's scenario for the future. Buhl believes that
Europe is disadvantaged on a cost basis in comparison to the US with regard to
its lack of tolerance for genetically modified mixed feed.

"Since 2002, the US has been able to increase its pigmeat exports to a
current amount of 1.4million tonnes, whilst the EU's exports have sunk to
1.3million tonnes. The trend will continue as long as the EU's strategy against
genetically modified feed continues to be upheld".

In addition, Buhl states that the EU is also not profiting from bilateral
agreements in the Asian markets, which will no doubt play an important role in
the future.